Investor · Sunnyvale, CA · Member since 2014 · 55 posts · 9 votes
Hi there
I have a solo 401k account and have rentals in the account. I would like to learn how other protect their properties against potential lawsuits, in addition to buying enough insurance.
While I have never come across a 401k being pierced since it falls under the trust umbrella for lawsuits brought against the plan assets, some will invest the solo 401k funds in an LLC thinking that they will get an extra layer of protection.
I agree with @Mark Nolan. Though in my experience most Solo 401k participant/trustees just invest with the trust, the most common additional step taken by those who want more protection is to invest with an LLC the member of which is the Solo 401k trust.